In re Carpenter, Bankruptcy No. 3-81-01085

• Decision Date: 26 January 1982
• Docket Number: Adv. No. 3-81-0817.,Bankruptcy No. 3-81-01085
• Citation: 17 BR 563
• Court: U.S. Bankruptcy Court — Eastern District of Tennessee
• Parties: In re Phillip Steven CARPENTER, Debtor. Paula RASNICK (Gentry), Plaintiff, v. Phillip Steven CARPENTER, Defendant.

17 B.R. 563 (1982)

In re Phillip Steven CARPENTER, Debtor.

Paula RASNICK (Gentry), Plaintiff, v. Phillip Steven CARPENTER, Defendant.

Bankruptcy No. 3-81-01085, Adv. No. 3-81-0817.

United States Bankruptcy Court, E.D. Tennessee.

January 26, 1982.

Douglas J. Carter, Johnson City, Tenn., for plaintiff.

Charles Crockett, Elizabethton, Tenn., for defendant.

MEMORANDUM

CLIVE W. BARE, Bankruptcy Judge.

This cause came on to be heard on the 7th day of December, 1981, upon the complaint filed on behalf of plaintiff to determine dischargeability of judgment, the answer thereto as filed by the debtor and the testimony of the witnesses heard in open court, the appearance and statements of respective counsel for the parties, and the entire record at large, from all of which the court finds that on or about March 14, 1977, plaintiff, Paula Rasnick (Gentry), entered into negotiations to purchase a 1976 Camaro automobile from Carpenter Auto Brokers, a business in which the defendant/debtor, Phillip Carpenter, is a partner. The court finds that the defendant represented to plaintiff that he would transfer a valid title to the automobile to plaintiff. The court further finds that title to said automobile was at that time most likely held by Johnny Shytle and that the car had been placed on consignment with Carpenter Auto Brokers. The court finds at no time did defendant disclose to plaintiff that he did not have valid title to the automobile. The court finds that a contract was entered into by and between plaintiff and defendant under which Carpenter was to take as a trade-in a Mustang automobile owned by the plaintiff on which an indebtedness was owing to the Carter County Bank and that plaintiff was to pay an additional sum in cash, which she did. As a part of said agreement, Carpenter was to pay off the lien on the Mustang held by the Carter County Bank, which he failed to do. Defendant Carpenter further failed to pay over the monies paid to him by the plaintiff to the consignor of the automobile. Defendant failed to furnish plaintiff a title to the automobile. The court further finds that the plaintiff borrowed a portion of the purchase price of the automobile at the Texas Instruments Credit Union in Johnson City, Tennessee. As a result of said loan, plaintiff repaid the amount of $1,370.00 to the credit union but later was required to surrender the car to the credit union.

Plaintiff thereafter instituted suit in the Chancery Court for Carter County at...